Canaccord Genuity analyst Aravinda Galappatthige maintained a Hold rating on Thomson Reuters today and set a price target of $182.00.
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Aravinda Galappatthige’s rating is based on a combination of factors influencing Thomson Reuters’ stock performance. The company’s Q2 results were generally in line with expectations, with adjusted EBITDA and EPS surpassing forecasts due to cost management, although revenue met predictions. Despite these positive aspects, the stock experienced a notable decline, which Galappatthige attributes to the moderation in upward revisions of estimates and guidance compared to the previous year, when multiple upward revisions were made.
The valuation of Thomson Reuters’ stock appears to be a significant factor in the Hold rating. While the company is showing promising growth prospects with new product innovations and potential market expansion in the legal sector, its current valuation is considered demanding compared to its peers. Additionally, while the company is poised for growth through M&A activities and new product launches, the current stock price reflects these prospects, leading to a Hold recommendation with a slight increase in the target price to $182.
In another report released on July 28, RBC Capital also maintained a Hold rating on the stock with a $215.00 price target.
Based on the recent corporate insider activity of 113 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TRI in relation to earlier this year.